Lecture Handout Flashcards
(33 cards)
What is the primary focus of the MBE in Contracts?
The MBE emphasizes certain topics over others and covers some ground that is rarely studied in first-year Contracts.
What are the three key questions to consider in contract law?
- Has an enforceable contract been formed?
- Has the contract been performed (or, has the performance been excused)?
- What are the remedies for breach?
What is a contract?
A contract is just a promise that is legally enforceable.
What is required for a promise to become a legally enforceable contract?
An agreement plus a special legal basis for enforcing the promise (e.g., bargained-for consideration).
Is the promise to give $1,000 next week a contract if accepted?
Yes.
What are the two parallel universes in contract law?
- Universe One—Common law for contracts dealing with real estate or services.
- Universe Two—UCC for contracts dealing with goods.
In which universe do contracts dealing with real estate fall?
Universe One.
Is a contract for mowing a lawn governed by common law?
Yes.
In which universe do contracts for the sale of goods fall?
Universe Two.
Does the UCC govern all parties entering into a goods contract?
Yes, not just merchants.
Is the contract to buy five dozen pencils from Staples governed by common law?
No.
What is the rule for mixed contracts in contract law?
The mixed contracts must fall into one universe or the other.
What is the exception for contracts that are divided into two mini-contracts?
Exception: divisible contracts.
Is the installation of a hot-water heater part of a deal governed by the UCC?
Depends on the context of the contract.
What is the rule used to determine if a good or a service plays a bigger role in a contract?
The predominant factor test.
Does the UCC apply to a commission for a portrait by Andy Warhol for $1 million?
No.
Does the UCC apply to a commission for a portrait by Mickey for $10?
No.
What are the four big topics within the question of whether an enforceable contract has been formed?
- Agreement (offer and acceptance)
- Consideration (and related theories for when you have to keep your promises)
- Defenses to formation (incapacity, duress, etc.)
- Statute of Frauds (enforceability)
What is the definition of an offer in contract law?
An offer is a manifestation of a willingness to enter into an agreement that creates a power of acceptance in the offeree.
What is the objective test in the context of offer and acceptance?
The outward appearance of words and actions matters—not secret intentions.
What does the key question in determining a legal offer focus on?
Whether an offeror displays an objectively serious intent to be bound.
True or False: An offer can be valid even if the offeror does not intend to be bound.
True
What must an offer usually be directed to?
A specific offeree.
What is a limited exception to the rule that an offer must be directed to a specific offeree?
Contest offers or reward offers that promise something to anyone who accomplishes a certain task.
